You Are a Taxpayer in the 24 Percent Tax Bracket

Multiple Choice

You are a taxpayer in the 24 percent tax bracket and you own a tax-exempt bond that pays 6 percent.What is your taxable equivalent yield?

A) 5.00 percent
B) 6.00 percent
C) 7.89 percent
D) 7.20 percent
E) 14.40 percent